Buy Now or Bye Now…

Reasons to Sell Before You Buy in Orangeville and Dufferin County

In today’s market, Orangeville and Dufferin County homeowners who are considering a move are faced with the tough decision – do we buy or sell first?  Much like the age old dilemma of the chicken and the egg, the answer will depend on whom you are asking.  

A lot of homeowners believe they should buy first (possibly a direct result of a fear of being homeless, or on the advice of a real estate agent).  While this approach does wonders to solidify an agent’s bottom line or inject local markets with eager buyers, it is rarely in YOUR best interest.  First, there is the risk that you cannot sell your home in time and end up carrying two mortgages.  Second, you are faced with two unknowns: what you can afford to buy and what you will receive from the sale of your home.

Reasons to Sell First and Buy Later:

1.  Higher Sales Price
Sellers who are not under pressure to sell because they’ve bought another home, typically receive a higher sales price.  Buyers are looking for a deal, and nothing screams “discount your offer” more than a seller who is desparate to sell.  Plus, having the luxury of time means you can wait for an offer that is acceptable to your terms.

2.  Ability to Negotiate
When you do find the home of your dreams, you can negotiate better terms than a buyer who makes an offer that is contingent on selling their home first.  Therefore, you increase your bargaining power.

3.  Conditional Offers
If the thought of being homeless is what keeps you up at night, rest assured because you do have options.  For example, inserting a clause in the agreement that is conditional on you finding an appropriate housing.  Therefore, if your dream home hasn’t hit the market yet, you can decide to stay where you are or make other arrangements until it does.

An influx of home buyers into the market brings greater demand and higher home prices.  Following exuberant buyers into a real estate market that is teetering on the edge, will most likely end badly.  I like to think we’ve learned from past ‘market bubbles’ and the actions our neighbours to the south.  Up here in the Great White North, we’ve seen housing prices increase by 80% over 6 six years, but we’ve yet to see a comparable correction.  In today’s environment of record levels household and governemnt debt, low interest rates (that can only move up from here), and high unemployment, the risk of stagnant or declining home values is still a stark reality. 

The reality is, in today’s market, selling before you buy can help to protect your biggest asset and your peace of mind.  For more information on selling your home in Orangeville or Dufferin County, please leave a comment or visit our website Northof9.ca .